Find the best places to invest

Orlando Real Estate Market: Wondering Where to Invest?

by Ranah AsadAug 31, 2018November 23, 2023

Due to its beautiful beaches and rapidly improving quality of life, the Orlando real estate market is becoming one of the best places to invest in, not only for local investors but international investors as well.

The Orlando real estate market is growing at a great speed and people from all over the country and even beyond the country are either choosing to move permanently or invest here. Investing in the Orlando real estate market is more lucrative than other cities with competitive markets since Orlando has experienced a 6% increase in property prices over the past year.

Orlando Real Estate Market Forecast

Let’s take a look at some numbers. Given below are the Orlando real estate market stats taken from Mashvisor’s investment property calculator.

To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.

Airbnb Occupancy Rate: 56.85%
Airbnb Rental Income: $2,116
Traditional Rental Income: $1,633
Airbnb Cash on Cash Return: 2.32%
Traditional Cash on Cash Return: 1.6%
Airbnb Cap Rate: 2.32%
Traditional Cap Rate: 1.6%
Median Price: $356,398

After analyzing the data above, it was obvious that the Orlando real estate market is looking good. Home values have gone up compared to previous years and many experts say that this growth will continue for coming years. Moreover, it is shown from the data above that the optimal rental strategy for Orlando is the Airbnb rental strategy, offering a 2.32% Airbnb cash on cash return. This does not mean that investing in traditional rentals will be worthless. There are investment properties rented out traditionally that offer a high return on investment.

Before I give you a list of investment properties that were pulled out using Mashvisor’s property finder tool, let’s quickly take a look at the best neighborhoods in Orlando for real estate investing.

Do you have a free Mashvisor account? Click here to use our Property Finder and find properties in a matter of minutes!

Orlando Real Estate Market: Top Neighborhoods to Invest in

1. Florida Center North

Median Property Price: $139,950
Traditional Rental Income: $1,217
Airbnb Rental Income: $1,398
Traditional Cash on Cash Return: 1.77%
Airbnb Cash on Cash Return: 4.42%
Traditional Cap Rate: 1.77%
Airbnb Cap Rate: 4.42%
Airbnb Occupancy Rate: 68.70%

2. Millenia

Median Property Price: $115,000
Traditional Rental Income: $1,078
Airbnb Rental Income: $2,266
Traditional Cash on Cash Return: 2.22%
Airbnb Cash on Cash Return: 11.72%
Traditional Cap Rate: 2.22%
Airbnb Cap Rate: 11.72%
Airbnb Occupancy Rate: 55.64%

3. Metro West

Median Property Price: $319,900
Traditional Rental Income: $1,589
Airbnb Rental Income: $3,134
Traditional Cash on Cash Return: 1.83%
Airbnb Cash on Cash Return: 7.65%
Traditional Cap Rate: 1.83%
Airbnb Cap Rate: 7.65%
Airbnb Occupancy Rate: 62.00%

4. Wadeview Park

Median Property Price: $335,950
Traditional Rental Income: $1,626
Airbnb Rental Income: $2,344
Traditional Cash on Cash Return: 1.83%
Airbnb Cash on Cash Return: 4.13%
Traditional Cap Rate: 1.83%
Airbnb Cap Rate: 4.13%
Airbnb Occupancy Rate: 60.80%

5. Central Business District

Median Property Price: $379,500
Traditional Rental Income: $1,526
Airbnb Rental Income: $2,924
Traditional Cash on Cash Return: 0.69%
Airbnb Cash on Cash Return: 4.94%
Traditional Cap Rate: 0.69%
Airbnb Cap Rate: 4.94%
Airbnb Occupancy Rate: 61.73%

Investors thinking about investing in rental properties using the traditional rental strategy might second guess Orlando since the numbers might not seem so attractive. But like I said earlier, there are investment properties that have a high potential for generating a profit which are rented out traditionally. Here are a few of many.

NOTE: These properties were pulled out using Mashvisor’s property finder tool. This tool helps real estate investors locate the best performing properties in their selected area of choice and according to the preferred rental strategy. If you want to see these properties in full detail, click here.

Orlando Property #1:

List Price: $449,900
Traditional Cash on Cash Return: 12.07%

Orlando Property #2:

List Price: $489,000
Traditional Cash on Cash Return: 11.70%

Orlando Property #3:

List Price: $235,000
Traditional Cash on Cash Return: 11.09%

Top Reasons to Invest in Orlando Real Estate Market

Orlando, FL has been known as one of the best cities to invest in. Here are the top reasons why real estate investors are eyeing the Orlando real estate market.

Increasing Foreign Investment

So many international, foreign investors from all over the world are showing interest in the Orlando real estate market because of its attractive scenery, beautiful weather and high quality of life. Orlando is extremely popular for its foreign investments due to its intercultural connection with people from various countries.

Immense Population Growth

Owing to the high emergence of foreign investors and people from various demographic differences, Orlando is going through an immense population growth. Just over the past 3 years alone, the population in this city has increased at the rate of 7.2%! This rate has never been experienced before. The Orlando real estate market is becoming and will continue to become the central attraction for many investors and businessmen.

Increasing Job Opportunities

This city is the new job hub for many young professionals. Orlando has seen a rapid increase in job opportunities in various technological fields such as engineering and IT. Orlando is one of the fastest growing metro areas in the country. This city also experienced an annual job growth of 4.4% and is expected to continue growing for the next 10 years. A market with such high job growth is definitely one that real estate investors should be chasing.

High Demand = More Rental Income

Due to the growing job opportunities, people from all over the country are moving to Orlando. This means that all these people will be looking for rental properties and the demand for both residential and commercial property rentals will skyrocket. High demand for rental properties translates into high rental income for property investors in the Orlando real estate market.

Transport Infrastructure

Another reason for the growing economy and population expansion in Orlando is the developed transportation infrastructure. This developed transport infrastructure makes traveling between destinations much easier. Overall, Florida has a well-organized transportation network which complements its high tourism rate as well.

Growing Economy

Orlando’s economy is known for its stability due to the developing Orlando real estate market and high tourism growth. The high population growth and job opportunities also help play a major role in Orlando’s growing economy. In a real estate housing market that has a high demand for rental properties and a booming economy, property investors can charge higher rents for their investment properties and receive a high return on investment.

Tax Laws are Flexible

It is known that Florida is one of the few states with no personal income tax. This is a blessing for real estate investors thinking about investing in the Orlando real estate market. Tax laws in Florida are flexible and investor friendly. For this reason, so many businesses are based here.

Orlando is an attractive tourism center

When we hear Orlando, we automatically think of Disneyland, Universal Studios, Sea World and so many more popular attractions. This city is considered to be the “Theme-Park Capital of the World,” which is why its tourism growth rate is so high. In addition to this, Orlando’s beautiful beaches and warm weather also lure thousands of tourists every year.

Orlando gives real estate additional value

Emerging Trends in Real-Estate has listed Orlando as the 16th growing real estate market in the USA with strong potential to grow quickly. Compared to similar markets in other cities like New York, the Orlando real estate market has all the aspects that indicate a flourishing growth in coming years. Florida, in general, is one of those states that has numerous cities that are great for investing in real estate. Miami, Ft. Lauderdale, and St. Petersburg are some examples.

Entrepreneurs and small business owners in Orlando

Due to its friendly tax environment and affordable real estate, Orlando can prove to be a vital opportunity for up and coming start-ups. Entrepreneurs and small business owners can rent showrooms and shops in this city that are more affordable than most other cities in the US.

Orlando Real Estate Market: How to Find Investment Properties

As you can see, the Orlando real estate market is every real estate investor’s dream. The question left to ask is how can you find investment properties in such an attractive market? With the right real estate investment tools, your property search will be as easy as 1,2,3. Here are the best tools from Mashvisor that you should definitely use to help make your search easier.

Mashvisor’s Heatmap

Mashvisor’s heatmap analysis can help you locate the most successful investments in your chosen city. Our heatmap analysis provides you with the necessary numbers to help make your search easier. The neighborhoods in a city are color-coded in green, orange and red. Green indicates high performing investment locations while red indicates low performing investment locations. Just by looking at the map, you can easily pinpoint the best performing neighborhoods for investment property in Orlando. To learn more about our heatmap, read: How to Find the Best Investment Property Using a Heatmap

Mashvisor’s Rental Property Calculator

Another great tool is Mashvisor’s rental property calculator. This is a great tool to help you conduct your real estate market analysis and investment property analysis. Both should be done to help you make smart investment decisions and not waste your money on an investment that you don’t know anything about. The tool quickly and accurately calculates all the real estate metrics you need to choose the most successful Orlando investment property. It also gives you a detailed neighborhood analysis to help you find the neighborhoods that offer the highest return on investment. Furthermore, our tool helps identify which optimal rental strategy best suits your chosen property. That way you can be sure that you’re making the right investment decision.

So, Should You Invest in Orlando Real Estate Market?

Absolutely YES! The Orlando real estate market currently has an ideal environment for US investors. So don’t waste time and head on down to Orlando.

To start your 7-day free trial with Mashvisor and subscribe to our services with a 15% discount after, click here.

Start Your Investment Property Search!

Start Your Investment Property Search! START FREE TRIAL